Question 1

How is statutory redundancy pay calculated in the UK?

Accepted Answer

Statutory redundancy pay is calculated using three factors: your age, your years of continuous service (capped at 20), and your weekly pay (capped at £719 for 2025/26). You receive 0.5 weeks pay per year worked under age 22, 1 week per year between ages 22 and 40, and 1.5 weeks per year aged 41 and over.

Question 2

What is the maximum statutory redundancy pay in 2025?

Accepted Answer

The maximum statutory redundancy pay in 2025/26 is £21,570, based on 20 qualifying years of service at the maximum weekly pay cap of £719.

Question 3

Do I qualify for statutory redundancy pay?

Accepted Answer

You qualify for statutory redundancy pay if you are an employee (not a worker or self-employed) and have at least 2 years of continuous employment with the same employer.

Question 4

Is redundancy pay taxable in the UK?

Accepted Answer

Statutory redundancy pay is tax-free. The first £30,000 of any enhanced redundancy payment is also tax-free. Any amount above £30,000 is subject to income tax.

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